Nevada Commerce Tax Audit

The Nevada Tax Department can audit any person or business who may be liable for the commerce tax. This includes any person who has to file a schedule C, E, or F on their Federal 1040. The audit net is very wide and can be used even if the entity is not filing a commerce tax return because the requirement is “may be liable.” If the business or individual keeps their business records out of state then they are responsible for paying the auditor’s travel expenses for the audit. Because the tax just started in 2015 there will be several legal and technical questions to be answered by audit.

Sec. 18. 1. “To verify the accuracy of any return filed or, if no return is filed by a business entity, to determine the amount of the commerce tax required to be paid pursuant to this chapter, the Department, or any person authorized in writing by the Department, may examine the books, papers and records of any person who may be liable for the commerce tax. 2. Any person who may be liable for the commerce tax and who keeps outside of this State any books, papers or records relating thereto shall pay to the Department an amount equal to the allowance provided for state officers and employees generally while traveling outside of the State for each day or fraction thereof during which an employee of the Department is engaged in examining those documents, plus any other actual expenses incurred by the employee while he or she is absent from his or her regular place of employment to examine those documents.” SenateBill483

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Cort is a licensed CPA and attorney in the state of Nevada. In 2010, Cort published a book on Sarbanes-Oxley titled “Towards a Working Model for Rulemaking Analysis; a unique approach analyzing Sarbanes-Oxley’s effectiveness.” Also in the 2014 elections, Cort was a candidate for Nevada Controller. For tax or audit assistance call his firm to schedule an appointment 702-216-1010.